D.A. Davidson's co‑CIO and head of investment management and research said that
since the Fed's last meeting inflation has moderated and job growth has been
modest, but a July escalation in US‑Iran military tensions has disrupted those
trends and could reverse the overall inflation progress seen in June. The Fed
must assess whether core inflation is sustainably lower; if higher inflation
expectations are forming, it should raise rates in July rather than wait until
September, since delaying could invite political criticism ahead of the midterm
elections.
